Former Darien Resident Charged In Investment Fraud Scheme: Feds
DARIEN, CT — A former Darien resident has been charged in connection with an investment fraud scheme that prosecutors say defrauded clients out of more than $4 million over a seven-year period.On May 7, a federal grand jury in New Haven returned a 21-count indictment charging John A. Masanotti Jr., 69, currently of Bonita Springs, Fla. The indictment charges Masanotti with eight counts of wire fraud, an offense that carries a maximum of 20 years in prison on each count; 11 counts of making illegal monetary transactions, which carries a maximum term 10 years in prison on each count; one count of making false statements, an offense that carries a maximum prison term of five years; and one count of falsification of records in a federal investigation, which carries a maximum term of imprisonment of 20 years.Masanotti was arrested on Thursday and released on a $100,000 bond, said Vanessa Roberts Avery, United States Attorney for the District of Connecticut, in a news release. Masanotti is scheduled to appear in Hartford Federal Court on May 15.Masanotti was the owner and managing member of Middlesex Mortgage Group LLC, also known as Middlesex Group LLC, based in Darien, Avery said, citing the indictment.Through Middlesex, Masanotti, acting as an investment advisor, purported to manage a pooled investment vehicle on behalf of investors, according to Avery. "Masanotti claimed to clients and potential clients that invested funds were going to be, and were in fact, pooled together and invested in foreign currency and other investments," Avery said. "Between approximately 2016 and 2023, Masanotti defrauded at least 10 clients of a total of more than $4 million by using their money for personal expenses, and to pay returns to other clients. Masanotti provided clients with fraudulent monthly account statements from Middlesex that showed fake investment profits."The indictment also accuses Masanotti of making false statements to the FBI during the investigation, and filing false records in an attempt to obstruct the investigation, Avery said.This case has been investigated by the FBI, IRS Criminal Investigation Division; and the U.S. Postal Inspection Service; with the assistance of the U.S. Securities and Exchange Commission.The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.The article Former Darien Resident Charged In Investment Fraud Scheme: Feds appeared first on Darien, CT Patch.
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